Step up global competitiveness in lame duck

The United States needs to develop a strategic plan to improve the competitiveness of American manufacturing. Such a strategy would identify the strengths, weaknesses, opportunities and threats to key American manufacturing sectors. It should recommend policies for how the United States can improve its technology, tax, trade and talent policies to strengthen American manufacturing. The Manufacturing Competitiveness Act of 2012 would charge the administration with the development of a comprehensive national manufacturing strategy.

Text Size

-

+

reset

5) Establish a National Network for Manufacturing Innovation

One of the best ways to boost American manufacturing is by embracing the Obama administration’s proposal to create a National Network for Manufacturing Innovation. These institutes would bring together industry, universities, community colleges, federal agencies and states to accelerate innovation by investing in industrially relevant manufacturing technologies with broad applications. The administration has proposed investing $1 billion to partner with industry — which will contribute at least 50 percent of the cost — to set up at least 15 institutes.

6) Pursue permanent normal trade relations with Russia

On Aug. 22, after 18 years of fitful negotiations, Russia finally joined the World Trade Organization. One of the key issues holding up Russia’s accession was its willingness to join the Information Technology Agreement. Although policymakers should continue to press Russia to join additional WTO agreements — notably the Government Procurement Agreement — Russia’s recent agreement to join the Information Technology Agreement along with the WTO warrants Congress pursuing PNTR with Russia. PNTR would formally denote free-trade relations between Russia and the United States, in effect granting Russia “most favored nation” trade status with America.

There’s no need to wait until 2013 for Congress to pass this legislation. Our global competitors certainly aren’t waiting to improve their tax, talent, technology and trade systems. We can’t either.

Robert Atkinson is founder and president of the Information Technology & Innovation Foundation; Stephen Ezell is a senior analyst with the ITIF.